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IRS Issues Guidance for Estates of Decedents Who Died in 2010

Under the "Economic Growth and Tax Relief Reconciliation Act of 2001," the estate tax was repealed for persons who died in 2010. However, the "Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010" reinstated the estate tax for persons who died in 2010.

This more recent law allows executors of the estates of decedents who died in 2010 to opt out of the estate tax and instead elect to be governed by the repealed carry-over basis provisions of the 2001 Act. Executors can indicate their desire to opt out of the estate tax by filling out Form 8939, which will be available soon; the form will be due November 15.

Visit the IRS website for more information. Consult your accountant for further information about which option will be best for your situation.